Lampasas: How Rates and Buydowns Affect Buying Power

What does a 7.18% mortgage rate mean for a buyer in Lampasas today? With the median closed price at $340,000 across 47 sales in the rolling six months ending October 31, 2026, monthly payments are sensitive to interest rates and down payment strategies. ALEX Intelligence modeled buying power using a standard 20% down payment on a $340,000 home at the current 7.18% rate. The principal and interest payment would be approximately $1,843 per month. For buyers seeking lower initial payments, a 3-2-1 buydown reduces the rate to 4.18% in year one, cutting the monthly payment by about $516. A 2-1 buydown offers a smaller reduction, saving roughly $353 in the first year. The total cost of a 3-2-1 buydown is estimated at $12,600 (3.71% of the price), while a 2-1 buydown costs about $6,408 (1.88%). These figures are ALEX Intelligence estimates based on median sale prices and do not constitute an appraisal. While rates remain elevated compared to recent years, the market shows resilience. Median days on market have dropped by 23.3% over the prior six-month period. The median price per square foot rose to $192, up 11.7% from the previous window. Buyers should weigh the upfront cost of buydowns against their long-term rate expectations and cash flow needs. Mortgage rates are sourced from Freddie Mac Primary Mortgage Market Survey, 30-year fixed, week of November 5, 2026 (FRED MORTGAGE30US). Want to see this home? Call or text George at 713.918.9951 for a private showing. Data from Unlock MLS. Information deemed reliable but not guaranteed. Model outputs are ALEX Intelligence estimates, not appraisals. Read more Central Texas market data on the ALEX blog: https://alex-companies.com/blog